Unit 6 Exam Rev 2

Question 1

All of these are reasons for probate EXCEPT

A)
to confirm that the will is valid.
B)
to identify which persons get any of the estate.
C)
to ensure that the heirs do not fight among themselves.
D)
to determine the exact assets of the deceased person.
Explanation
The answer is to ensure that the heirs do not fight among themselves. Preventing fights among heirs is not the reason for probate.

Answer 1

C)

to ensure that the heirs do not fight among themselves.

Question 2

Question #2 of 35
Question ID: 938055
A general power of attorney

A)
provides general legal authority for intestate succession.
B)
is illegal in most states.
C)
provides authority to carry out all of the business dealings of the person giving it.
D)
requires delivery and acceptance by the grantee.
Explanation
The answer is provides authority to carry out all of the business dealings of the person giving it. A general power of attorney provides authority to carry out all of the business dealings of the person giving it. A special power of attorney permits the execution of only certain acts.

Answer 2

C)

provides authority to carry out all of the business dealings of the person giving it.

Question 3

Land lost through erosion is an example of

A)
adverse possession.
B)
voluntary alienation.
C)
involuntary acceleration.
D)
involuntary alienation.
Explanation
The answer is involuntary alienation. Land lost through erosion is an example of involuntary alienation.

Answer 3

D)

involuntary alienation.

Question 4

Title to real estate may be transferred during a person’s lifetime by

A)
devise.
B)
involuntary alienation.
C)
descent.
D)
escheat.
Explanation
The answer is involuntary alienation. Transfer of title by devise (will), descent (death intestate), or escheat (for lack of a will and lack of heirs) all occur after death. Involuntary alienation, such as condemnation, foreclosure sale, or tax sale, can occur during a person's lifetime.

Answer 4

B)

involuntary alienation.

Question 5

A deed contains a guarantee that the grantor will compensate the grantee for any loss resulting from the title’s failure in the future. This is an example of which covenant?

A)
Further assurance
B)
Quiet enjoyment
C)
Warranty forever
D)
Seisin
Explanation
The answer is warranty forever. The grantor promises to compensate the grantee for the loss sustained if the title fails at any time in the future in the covenant of warranty forever.

Answer 5

C)

Warranty forever

Question 6

Question #6 of 35
Question ID: 936099
A form authorizing one person to execute documents for another is called

A)
a power of attorney.
B)
a quitclaim deed.
C)
a release deed.
D)
a power to represent.
Explanation
The answer is a power of attorney. That document is a power of attorney; the person named in it is an attorney-in-fact. Deeds do not authorize one person to act for another.

Answer 6

A)

a power of attorney.

Question 7

Any limitations or reservations that a grantor intends to make part of a conveyance of real estate should be

A)
included in the deed.
B)
noted in the deed by the phrase “with certain reservations.”
C)
noted in a separate document that is conveyed with the deed.
D)
included in a document that is delivered to the grantee before issuance of the deed.
Explanation
The answer is included in the deed. And limitations, exceptions, or reservations that the grantor intends to make must be specifically noted in the deed.

Answer 7

A)

included in the deed.

Question 8

A 15-year-old recently inherited a parcel of real estate and has decided to sell it. If the 15-year-old executes a deed conveying the property to a purchaser, such a conveyance would be

A)
void.
B)
invalid.
C)
voidable.
D)
valid.
Explanation
The answer is voidable. Real estate contracts entered into by minors are generally voidable by the minor until the minor reaches the age of majority—18 in most states—or shortly thereafter.

Answer 8

C)

voidable.

Question 9

Title to real estate means the right to or ownership of the land and represents the owner’s

A)
bundle of legal rights but in itself does not serve as evidence of ownership.
B)
barrel of legal rights and also serves as evidence of ownership.
C)
bundle of legal rights and also serves as evidence of ownership.
D)
barrel of legal rights but in itself does not serve as evidence of ownership.
Explanation
The answer is bundle of legal rights and also serves as evidence of ownership. Title to real estate means the right to or ownership of the land and represents the owner’s bundle of legal rights and also serves as evidence of ownership.

Answer 9

C)

bundle of legal rights and also serves as evidence of ownership.

Question 10

A grantor conveys property by delivering a deed. The deed contains five covenants. This is MOST likely

A)
a deed in trust.
B)
a general warranty deed.
C)
a quitclaim deed.
D)
a will.
Explanation
The answer is a general warranty deed. A general warranty deed contains covenants of seisin, further assurance, quiet enjoyment, freedom from encumbrances, and warranty forever.

Answer 10

B)

a general warranty deed.

Question 11

Title acquired through adverse possession must be open, notorious, continuous, hostile, and

A)
obtained only after notifying the true owner.
B)
adverse to the true owner’s possession.
C)
compatible with the true owner’s possession.
D)
not required through the legal process in the court system.
Explanation
The answer is adverse to the true owner’s possession. Title acquired through adverse possession must be open, notorious, continuous, hostile, and adverse to the true owner’s possession.

Answer 11

B)

adverse to the true owner’s possession.

Question 12

All of the following are true of deeds EXCEPT

A)
they differ in the promises they offer the grantee.
B)
they are used to transfer title to real estate.
C)
they guarantee ownership.
D)
there must be a competent grantor.
Explanation
The answer is they guarantee ownership. Deeds differ in the promises or warrants they give, they are used to transfer title in real estate, and they must have a competent grantor (which is one of the seven elements that make a deed valid). Deeds do not guarantee ownership.

Answer 12

C)

they guarantee ownership.

Question 13

The grantor of property transferred by deed promises to compensate the grantee for any future loss sustained by a defect in the title to the property by

A)
the covenant of seisin.
B)
the promissory note.
C)
the covenant against future losses.
D)
the covenant of warranty forever.
Explanation
The answer is the covenant of warranty forever. With this covenant, the grantor promises to compensate the grantee for any loss sustained by the grantee if the title to the property fails at any time in the future.

Answer 13

D)

the covenant of warranty forever.

Question 14

What type of deed provides the grantee with the LEAST protection?

A)
Quitclaim deed
B)
Special warranty deed
C)
General warranty deed
D)
Bargain and sale deed
Explanation
The answer is quitclaim deed. The quitclaim deed carries no covenants or warranties and generally conveys only whatever interest the grantor may have in the identified property at the time the deed is delivered.

Answer 14

A)

Quitclaim deed

Question 15

The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) under

A)
common law.
B)
federal law.
C)
the state's real estate laws.
D)
a state's law of descent and distribution.
Explanation
The answer is a state's law of descent and distribution. The primary heirs of the deceased are the surviving spouse and close blood relatives (such as children, parents, brothers, sisters, aunts, uncles, and, in some cases, first and second cousins) identified under a state's law of descent and distribution.

Answer 15

D)

a state’s law of descent and distribution.

Question 16

Question #16 of 35
Question ID: 938018
A holdover from English common law, the statute of frauds that is found in all states requires that a deed

A)
be in writing.
B)
be drafted by an attorney.
C)
recite the terms under which the grantor received title to the property.
D)
include the date of birth of the grantor.
Explanation
The answer is be in writing. A deed need not be drafted by an attorney, although that is one way to insure that it will be legally sufficient to transfer title to the identified property.

Answer 16

A)

be in writing.

Question 17

Question #17 of 35
Question ID: 785053
All of the following are true of the holder of a fee simple absolute estate EXCEPT

A)
the estate terminates upon death.
B)
the holder has the maximum estate available in land.
C)
the holder can transfer rights to others.
D)
the holder has maximum control over the property.
Explanation
The answer is the estate terminates upon death. Fee simple absolute estates potentially last forever.

Answer 17

A)

the estate terminates upon death.

Question 18

Question #18 of 35
Question ID: 954494
In one state, the transfer tax is $0.80 per $500 or fraction thereof. There is no tax charged on the first $500 of the price. What tax must the seller pay if the property sells for $329,650?

A)
$526.40
B)
$527.20
C)
$525.60
D)
$528.00
Explanation
The answer is $527.20. The seller must pay $527.20:

$329,650 – the $500 = $329,150

$329,150 ÷ $500 = 658.3, rounded up to 659 659 × $0.80 = $527.20

Answer 18

B)

$527.20

Question 19

Question #19 of 35
Question ID: 785064
All of the following are associated with adverse possession EXCEPT

A)
open.
B)
off and on for the last five years.
C)
hostile.
D)
adverse.
Explanation
The answer is off and on for the last five years. The law recognizes that the use of land is an important function of its ownership. The statutory periods range from as few as 5 years in some states to as many as 30 years in others.

Answer 19

B)

off and on for the last five years.

Question 20

Question #20 of 35
Question ID: 938003
Title to property may be transferred without the owner’s consent by

A)
voluntary alienation.
B)
gift.
C)
involuntary alienation.
D)
sales contract.
Explanation
The answer is involuntary alienation. Involuntary alienation is the transfer of property without the consent of the property owner.

Answer 20

C)

involuntary alienation.

Question 21

Question #21 of 35
Question ID: 938046
Which type of deed is used by a grantor whose interest in the real estate may be unknown?

A)
General warranty deed
B)
Special warranty deed
C)
Bargain-and-sale deed
D)
Quitclaim deed
Explanation
The answer is a quitclaim deed. A quitclaim deed transfers whatever interest the grantor may have. If the grantor has no interest, the grantee will acquire nothing and have no right of warranty claim against the grantor.

Answer 21

D)

Quitclaim deed

Question 22

Question #22 of 35
Question ID: 938015
An important feature of adverse possession is that the individual who intends to make a claim to property owned by someone else must

A)
keep the claim a secret until the claim has ripened for the number of years required by state law.
B)
publish a note of claim in a newspaper of general circulation in the state in which the property is located.
C)
use the property.
D)
post a notice of ownership on the property.
Explanation
The answer is use the property. The claimant’s property use must be open, notorious, continuous, hostile, and adverse to the true owner’s right of possession for the statutory period.

Answer 22

C)

use the property.

Question 23

Question #23 of 35
Question ID: 938056
What limits are set by the covenants in a general warranty deed?

A)
The covenants are limited to the matters that occurred within the last 10 years.
B)
The covenants are limited to the matters that occurred before the grantor owned the property.
C)
No limits are set.
D)
The covenants are limited to matters that occurred during the time the grantor owned the property.
Explanation
The answer is no limits are set. No limits are set by the covenants in a general warranty deed; the grantor defends the title against the grantor and all those who previously held title.

Answer 23

C)

No limits are set.

Question 24

Question #24 of 35
Question ID: 954493
In one state, transfer tax is $1.20 for each $300 (or fraction of $300) of the sales price of any parcel of real estate. If a seller’s property sold for $250,000, what will be the amount of the transfer tax due?

A)
$1,250.50
B)
$1,000.80
C)
$999.99
D)
$97.00
Explanation
The answer is $1,000.80. The transfer tax due is $1,000.80:

$250,000 ÷ $300 = 833.33, rounded up to 834 834 × $1.20 = $1,000.80

Answer 24

B)

$1,000.80

Question 25

Question #25 of 35
Question ID: 785071
An important purpose of a living trust is to

A)
avoid having property in the trust go through probate.
B)
avoid paying estate taxes.
C)
have a notice of all property of the trustor included in the public record.
D)
have all property of the trustor included in the estate for purposes of probate.
Explanation
The answer is avoid having property in the trust go through probate. On the trustor’s death, the trust need not go through a probate proceeding because title automatically passes to the beneficiary named in the trust. The living trust has no effect on the value of the estate for estate tax purposes, however.

Answer 25

A)

avoid having property in the trust go through probate.

Question 26

Question #26 of 35
Question ID: 938010
When a person dies, ownership of real estate

A)
passes upon notice to all the devisees in a will.
B)
passes via the laws of descent and distribution.
C)
passes immediately.
D)
must go through probate.
Explanation
The answer is passes immediately. When a person dies, ownership of real estate immediately passes either to the heirs by descent or to the persons named in the will. Before full title and possession of the property may be taken, the estate must go through a judicial procedure called probate.

Answer 26

C)

passes immediately.

Question 27

Question #27 of 35
Question ID: 441395
Generally, where does a probate proceeding involving real property take place?

A)
In the county in which the executor or the beneficiary resides
B)
In both the county where the decedent resided and the county in which the property is located
C)
Only in the county in which the decedent resided
D)
Only in the county in which the property is located
Explanation
The answer is in both the county where the decedent resided and the county in which the property is located. There will be two probates conducted: one in the county where the decedent resided and another in the county where the real estate is located.

Answer 27

B)

In both the county where the decedent resided and the county in which the property is located

Question 28

Question #28 of 35
Question ID: 453170
A sale to satisfy delinquent tax or mortgage liens is an example of

A)
involuntary acceleration.
B)
voluntary alienation.
C)
involuntary alienation.
D)
adverse possession.
Explanation
The answer is involuntary alienation. A sale to satisfy delinquent tax or mortgage liens is an example of involuntary alienation.

Answer 28

C)

involuntary alienation.

Question 29

Question #29 of 35
Question ID: 936105
A resident of Denver bought acreage in a distant county, never went to see the acreage, and did not use the ground. An artist moved a mobile home onto the land, had a water well drilled, and lived there for 22 years. The artist may become the owner of the land if the artist is in compliance with the state law regarding

A)
avulsion.
B)
voluntary alienation.
C)
requirements for a valid conveyance.
D)
adverse possession.
Explanation
The answer is adverse possession. Adverse possession is (hostile) possession of real estate without the permission of the owner and contrary to the owner's best interests. If it continues in an open, conspicuous (notorious) way for the time set by statute (the statutory period), the adverse possessor may take legal action to be declared the owner on the basis of all these facts.

Answer 29

D)

adverse possession.

Question 30

Question #30 of 35
Question ID: 938017
In MOST states, a written will must be signed by its testator

A)
before two or more witnesses, who must also sign the document.
B)
according to the state’s law of descent and distribution.
C)
in the presence of an attorney.
D)
before the clerk of the probate court.
Explanation
The answer is before two or more witnesses, who must also sign the document.

Answer 30

A)

before two or more witnesses, who must also sign the document.

Question 31

Question #31 of 35
Question ID: 972055
A bargain and sale deed contains how many express warranties?

A)
3
B)
5
C)
2
D)
0
Explanation
The answer is 0. A bargain and sale deed contains no express warranties against encumbrances; however, it does imply that the grantor holds title and possession of the property.

Answer 31

D)

0

Question 32

Question #32 of 35
Question ID: 938002
Probate is a formal judicial process that does all of the following EXCEPT

A)
see that assets are distributed correctly, but only if the deceased was unmarried.
B)
determine the precise assets of a deceased person.
C)
prove or confirm the validity of a will.
D)
identifies the people to whom the assets are to pass.
Explanation
The answer is see that assets are distributed correctly, but only if the deceased was unmarried. Married couples, as well as unmarried individuals, normally are subject to probate rules. The use of living trusts by spouses can postpone probate until the second spouse dies. Probate confirms the validity of a will, determines the precise assets, and identifies to whom those assets will pass.

Answer 32

A)

see that assets are distributed correctly, but only if the deceased was unmarried.

Question 33

Question #33 of 35
Question ID: 938019
Real estate that is inherited from a person who died testate is called

A)
a devise.
B)
a bequest.
C)
a demise.
D)
a legacy.
Explanation
The answer is a devise. The gift of real property by will is known as a devise, and the person who receives property by will is known as a devisee.

Answer 33

A)

a devise.

Question 34

Question #34 of 35
Question ID: 775424
The possession of property by an adverse possession claimant must be

A)
open.
B)
hostile.
C)
all of these.
D)
notorious.
Explanation
The answer is all of these. The possession by the claimant must be open (obvious to anyone who looks), notorious (known by others), continuous (uninterrupted), hostile (without the true owner's consent), and adverse (to the true owner's possession).

Answer 34

C)

all of these.

Question 35

Question #35 of 35
Question ID: 938036
A valid will devises a decedent’s real estate after payment of all debts, claims, inheritance taxes, and expenses through

A)
the granting clause established in the will.
B)
the administrator of the estate.
C)
the law of testate succession.
D)
the court action known as probate.
Explanation
The answer is the court action known as probate. For the title to pass to the devisees, state laws require that on the death of a testator, the will must be filed with the court and probated. Probate is the legal procedure verifying the validity of a will and accounting for the decedent's assets.

Answer 35

D)

the court action known as probate.